EX-99.1 2 a07-10497_1ex99d1.htm EX-99.1

Exhibit 99.1

 

NEWS

 

 

 

INVESTOR CONTACT:   (818) 225-3550

 

 

David Bigelow or Lisa Riordan

 

 

MEDIA CONTACT:   (800) 796-8448

 

COUNTRYWIDE REPORTS MARCH 2007 OPERATIONAL RESULTS

CALABASAS, CA (April 12, 2007) — Countrywide Financial Corporation (NYSE: CFC) released operational data for the month ended March 31, 2007.  Key operational results included the following:

·                  Mortgage loan fundings for the month of March totaled $43 billion, an increase of 5 percent from March 2006.

—           Monthly purchase volume was $17 billion, which compares to $19 billion for the year-ago period.

—           Home equity loan fundings were $4.0 billion, down 5 percent from March 2006.

—           Nonprime loan fundings declined 29 percent from March 2006 to $2.4 billion at March 2007.

—           On a consolidated basis, Countrywide funded $3.5 billion in pay-option loans during the month as compared to $8.8 billion in March 2006.  Year-to-date fundings for pay-option loans totaled $9.6 billion, as compared to $22 billion for the same prior year period.  These amounts include pay-option loans that have a fixed rate for five years, which totaled $1.3 billion in March 2007 and $2.3 billion year-to-date.

—           It should be noted that the various mortgage loan funding categories listed above are not mutually exclusive and are not intended to equal 100 percent of total fundings.

·                  Average daily mortgage loan application activity for March 2007 was $3.1 billion, up 17 percent from March 2006.  The mortgage loan pipeline was $69 billion at March 31, 2007 as compared to $64 billion at March 31, 2006.

·                  The mortgage loan servicing portfolio continued to grow, totaling $1.4 trillion at March 31, 2007.  This is an increase of $199 billion, or 17 percent, from March 31, 2006.

·                  Banking Operations’ assets were $84 billion at March 31, 2007, which compares to $78 billion at March 31, 2006.

·                  Securities trading volume in the Capital Markets segment of $397 billion for March 2007 was 7 percent higher when compared to the same month last year.

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·                  Net earned premiums from the Insurance segment totaled $112 million, up 21 percent from March 2006.

“The March 2007 and first quarter 2007 operational statistics are reflective of current mortgage market conditions,” said David Sambol, President and Chief Operating Officer.  “Production volume was dominated by refinance and fixed-rate loan activity, which accounted for 60 percent and 66 percent of total mortgage loan originations, respectively, for the month of March 2007, and 62 percent and 64 percent of total mortgage loan originations, respectively, for the first quarter of 2007.  Nonprime fundings continued to decline, accounting for 5 percent of total mortgage loan originations for March 2007 and 7 percent of total mortgage loan originations for the first quarter of 2007.

“The servicing portfolio was $1.4 trillion, which compares to $1.2 trillion one year ago.  Delinquencies on the portfolio (as a percentage of the number of loans serviced) were 4.29 percent for March 2007, which compares to 5.02 percent for December 2006, and 3.68 percent for March 2006.  Historically, delinquencies have trended downward from the fourth quarter to the first quarter due to seasonality.

“While current market conditions are creating short-term volatility in our residential mortgage business, management believes the Company is well-positioned to capitalize upon the longer-term opportunities that are being created as the marketplace rationalizes.”

About Countrywide

Founded in 1969, Countrywide Financial Corporation is a diversified financial services provider and a member of the S&P 500, Forbes 2000 and Fortune 500.  Through its family of companies, Countrywide originates, purchases, securitizes, sells, and services prime and nonprime loans; provides loan closing services such as credit reports, appraisals and flood determinations; offers banking services which include depository and home loan products; conducts fixed income securities underwriting and trading activities; provides property, life and casualty insurance; and manages a captive mortgage reinsurance company. For more information about the Company, visit Countrywide’s website at www.countrywide.com.

This Press Release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, regarding management’s beliefs, estimates, projections, and assumptions with respect to, among other things, the Company’s future operations, business plans and strategies, as well as industry and market conditions, all of which are subject to change. Actual results and operations for any future period may vary materially from those projected herein and from past results discussed herein.  Factors which could cause actual results to differ materially from historical results or those anticipated include, but are not limited to: competitive and general economic conditions in each of our business segments such as slower or negative home price appreciation; changes in general business, economic, market and political conditions in the United States and abroad from those expected; loss of investment grade ratings that may result in an increase in the cost of debt or loss of access to corporate debt markets; reduction in government support of homeownership; the level and volatility of interest rates; changes in interest rate paths; increases in the delinquency rates of borrowers; changes in generally accepted accounting principles or in the legal, regulatory and legislative environments in the markets in which the Company operates; the ability of management to effectively implement the Company’s strategies; and other risks noted in documents filed by the Company with the Securities and Exchange Commission from time to time.  Words like “believe,” “expect,” “anticipate,” “promise,” “plan,” and other expressions or words of similar meanings, as well as future or conditional verbs such as “will,” “would,” “should,” “could,” or “may” are generally intended to identify forward-looking statements.  The Company undertakes no obligation to publicly update or revise any forward-looking statements.

(tables follow)

 

2



COUNTRYWIDE FINANCIAL CORPORATION AND SUBSIDIARIES

OPERATING STATISTICS(1)
(Dollars in Millions)

 

 

 

Month Ended `

 

Year-to-Date

 

 

 

March 31
2007

 

March 31
2006

 

March 31
2007

 

March 31
2006

 

LOAN PRODUCTION

 

 

 

 

 

 

 

 

 

Number of Working Days in the Period

 

22

 

23

 

62

 

62

 

Average Daily Mortgage Loan Applications

 

$

3,134

 

$

2,687

 

$

2,990

 

$

2,541

 

Mortgage Loan Pipeline (loans-in-process)

 

$

69,389

 

$

64,167

 

 

 

 

 

Commercial Real Estate Loan Pipeline (loans-in-process)

 

$

3,207

 

$

599

 

 

 

 

 

Loan Fundings (2):

 

 

 

 

 

 

 

 

 

Retail Lending

 

$

14,409

 

$

13,513

 

$

39,011

 

$

34,626

 

Wholesale Lending

 

8,159

 

9,349

 

22,188

 

23,649

 

Correspondent Lending

 

18,616

 

15,680

 

49,773

 

41,136

 

Capital Markets Purchases

 

954

 

1,306

 

1,829

 

4,007

 

Banking Operations Purchases (2)

 

1,144

 

1,570

 

2,163

 

2,114

 

Total Mortgage Loan Fundings

 

43,282

 

41,418

 

114,964

 

105,532

 

Commercial Real Estate Lending

 

664

 

463

 

2,011

 

966

 

Total Loan Fundings

 

$

43,946

 

$

41,881

 

$

116,975

 

$

106,498

 

 

 

 

 

 

 

 

 

 

 

Total Bank Mortgage Loan Fundings (3)

 

$

14,533

 

$

6,121

 

$

43,722

 

$

14,673

 

 

 

 

 

 

 

 

 

 

 

Loan Fundings in Units (2):

 

 

 

 

 

 

 

 

 

Retail Lending

 

80,682

 

88,971

 

218,135

 

230,968

 

Wholesale Lending

 

38,936

 

45,660

 

105,919

 

115,342

 

Correspondent Lending

 

92,391

 

76,598

 

245,999

 

203,505

 

Capital Markets Purchases

 

2,884

 

4,871

 

5,652

 

15,385

 

Banking Operations Purchases (2)

 

7,552

 

4,869

 

19,617

 

6,449

 

Total Mortgage Loan Fundings

 

222,445

 

220,969

 

595,322

 

571,649

 

Commercial Real Estate Lending

 

88

 

38

 

212

 

88

 

Total Loan Fundings

 

222,533

 

221,007

 

595,534

 

571,737

 

 

 

 

 

 

 

 

 

 

 

Total Bank Mortgage Loan Fundings (3)

 

87,660

 

41,877

 

257,659

 

105,786

 

 

 

 

 

 

 

 

 

 

 

Mortgage Loan Fundings (2)(4):

 

 

 

 

 

 

 

 

 

Purchase

 

$

17,265

 

$

18,941

 

$

43,166

 

$

47,010

 

Non-purchase

 

26,017

 

22,477

 

71,798

 

58,522

 

Total Mortgage Loan Fundings

 

$

43,282

 

$

41,418

 

$

114,964

 

$

105,532

 

Mortgage Loan Fundings by Product (2):

 

 

 

 

 

 

 

 

 

Government Fundings

 

$

1,406

 

$

1,206

 

$

3,539

 

$

2,878

 

ARM Fundings

 

$

14,677

 

$

20,668

 

$

40,958

 

$

53,722

 

Home Equity Fundings

 

$

3,976

 

$

4,176

 

$

10,539

 

$

11,063

 

Nonprime Fundings

 

$

2,355

 

$

3,318

 

$

7,881

 

$

9,205

 

 

 

 

 

 

 

 

 

 

 

MORTGAGE LOAN SERVICING (5)

 

 

 

 

 

 

 

 

 

Volume

 

$

1,351,598

 

$

1,152,651

 

 

 

 

 

Units

 

8,438,625

 

7,604,711

 

 

 

 

 

Subservicing Volume (6)

 

$

16,258

 

$

26,172

 

 

 

 

 

Subservicing Units

 

172,916

 

238,767

 

 

 

 

 

Prepayments in Full

 

$

20,896

 

$

18,992

 

$

57,832

 

$

47,003

 

Bulk Servicing Acquisitions

 

$

5,198

 

$

24

 

$

12,437

 

$

101

 

Servicing Portfolio Performance - CHL (7)

 

 

 

 

 

 

 

 

 

Delinquency as a percentage of:

 

 

 

 

 

 

 

 

 

unpaid principal balance

 

4.07

%

3.18

%

 

 

 

 

number of loans serviced

 

4.29

%

3.68

%

 

 

 

 

Foreclosures Pending as a percentage of:

 

 

 

 

 

 

 

 

 

unpaid principal balance

 

0.83

%

0.44

%

 

 

 

 

number of loans serviced

 

0.69

%

0.47

%

 

 

 

 

 

 



COUNTRYWIDE FINANCIAL CORPORATION AND SUBSIDIARIES

OPERATING STATISTICS(1)
(Dollars in Millions)

 

 

Month Ended `

 

Year-to-Date

 

 

 

March 31
2007

 

March 31
2006

 

March 31
2007

 

March 31
2006

 

LOAN CLOSING SERVICES (units)

 

 

 

 

 

 

 

 

 

Credit Reports

 

1,109,878

 

952,880

 

2,831,068

 

2,562,885

 

Flood Determinations

 

305,214

 

325,135

 

862,851

 

854,328

 

Appraisals

 

123,070

 

112,836

 

336,172

 

279,573

 

Automated Property Valuation Services

 

573,932

 

590,348

 

2,371,180

 

2,055,544

 

Other

 

24,179

 

18,194

 

73,534

 

49,778

 

Total Units

 

2,136,273

 

1,999,393

 

6,474,805

 

5,802,108

 

 

 

 

 

 

 

 

 

 

 

CAPITAL MARKETS

 

 

 

 

 

 

 

 

 

Securities Trading Volume (8)

 

$

396,545

 

$

371,190

 

$

997,942

 

$

978,355

 

 

 

 

 

 

 

 

 

 

 

BANKING

 

 

 

 

 

 

 

 

 

Banking Operations Assets (in billions)

 

$

84

 

$

78

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INSURANCE

 

 

 

 

 

 

 

 

 

Net Premiums Earned:

 

 

 

 

 

 

 

 

 

Carrier

 

$

91.1

 

$

75.4

 

$

270.9

 

$

228.0

 

Reinsurance

 

20.9

 

17.4

 

63.3

 

51.8

 

Total Net Premiums Earned

 

$

112.0

 

$

92.8

 

$

334.2

 

$

279.8

 

 

 

 

 

 

 

 

 

 

 

Period-end Rates

 

 

 

 

 

 

 

 

 

10-Year U.S. Treasury Yield

 

4.65

%

4.86

%

 

 

 

 

FNMA 30-Year Fixed Rate MBS Coupon

 

5.77

%

6.01

%

 

 

 

 

(1) This data reflects current operating statistics and do not constitute all factors impacting the quarterly and
annual financial results of the Company.  All figures are unaudited and monthly figures may be adjusted in the
reported financial statements of the Company.  Such financial statements are provided by the Company quarterly.
The Company makes no commitment to update this information for changes in circumstances or events which
occur subsequent to the date of this release.

(2) During December 2006, the Company began reporting Banking Operations purchases from third parties.
Prior months have been restated to reflect these purchases.

(3) These loans are either processed for Countrywide Bank by the Company’s Mortgage Banking production divisions or purchased from non-affiliates and are included in “Total Mortgage Loan Fundings” above.  The amounts include loans funded for both investment purposes and for sale.  The Company will report the amount of such loans subsequently sold on a quarterly basis.

(4) Purchase fundings include first trust deed and home equity loans used as purchase money debt in the
acquisition of a home. Non-purchase fundings include first trust deed refinance loans, home equity refinance loans, and stand-alone home equity loans.

(5) Includes loans held for sale, loans held for investment, and loans serviced for others, including those under subservicing agreements.

(6) Subservicing volume for non-Countrywide entities.

(7) Excluding subserviced loans and portfolios purchased at a discount due to their non-performing status.

(8) Includes trades with Mortgage Banking Segment.